we'll have the fed minutes in a couple minutes. meanwhile, stocks cutting early-morning losses on vaccine hopes. and better than expected employment data. all the major averages are mixed, as we await the release of the minutes russell down about 1.2%. check out pfizer, folks, spiking as it announces the

vaccine boosted the antibodies in patients fighting the virus we'll have more on that new development. and as new cases hit a record high here, tillman fertitta says this is a mess for business and employees he will join us later this hour. "power lunch" starts right now thank you, tyler, as we await the minutes, let's get todto dom chu. >> it could be the same. with quarters like we just saw, typically the momentum -- however, tyler mentioned the trading today very mixed the dow is up just 206 points, the s&p 500 up about 23, so we are seeing a bit of a move off those session highs right now. still, though, for the time

being, green on the screen namely the s&p 500 and however it sits away from the record high we saul earlier this year, remember, from that level to where we are now, we're still about 8% below record highs. we'll see if they can break out above or below this range. two stocks to keep an eye on fedex stock after the great earnings report that they had. you can see here up about 12% off the highest levels of the day. still, though, and then tesla. the reason why we're going to highlight this, we are seeing a record high today. a gold starred up there. however, this precipitous move higher has now made tesla worth around $206 billion in equity market value by the way, just for comparison, kelly, tyler, toyota is worth about $202 billion we have tesla being the most valuable car company in the

world. that's stoking a lot of skepticism and euphoria as well. >> either way it's incredible. rick santelli is tracking the action at the cme. rick >> i'll tell you what, kelly i know steve will have a great gran ullr analysis with regard to the fed minutes, but i will tell you this one of the head democrat lines is right in our wheelhouse for treasuries. that is a that many officials agreed they need more analysis of yield curve control yield curve control has been the talk of the town for any of the treasury aficionados and while that is hitting the wires, i see a bit of curve steepening you have a two-year note yield hovering to pretty close to unchanged, but when you look at 10s, particularly 30s, we see yields a bit more firm it's moved up a bit on some of these headlines, so the curve is

getting steeper. remember, the japanese, of course, have done yield curve control. we can argue about the merits there. the big talk has been about the 30-year bond is now trading very close to where a 30-year bond yield is for bank of japan, for jgb, japanese government bond. that's making many nervous, especially when other economies are trying to copy some of the policies that the japanese have implemented over the years the dollar index is under pressure i'm sure steve will give us more granular details on some options they have moving forward to continue to try to have an influence on the treasury yields and, of course the quantitative easing and purchases even though the balance sheet is for the last couple weeks has gotten a bit smaller, we'll find out tomorrow after the close if that two-week trend continues. back to you, tyler. >> thank you, rich we'll hear from steve, the king

of granularity in the meantime, let's get to our manual, david abgari is at angel oak capital advisers, and tom, let me begin with you rick just mentioned the concept of yield curve control i'd like you, for the laymen in the audience, to explain what that means and why the fed would do it. >> yield curve control is basically picking a point on the curve, say ten-year yields, which is what the boj is doing, basically saying for some period of time we're going to hold yields at this level it's another form of forward guidance a lot of people may remember from a few years ago back the fed said we're data dependence that's forward guidance. yield curve control is a more rigorous form. i think the way the fed is

talking about it is sort of a flawed approach. the boj basically have a barbell approach the way that the fed is talking about it is they actually recognize that they really can't go after the ten-year part, because at the end of the day that's a global benchmark that strategy doesn't make a lot of sense. it doesn't seem as nearly effective. they already control the front end of the mark because of fed funds. >> tom, i want to ask you in a moment a bit more about why the fed would put the stake in the ground that seems to me like you're sort of showing your cards in the poker game but we have steve liesman there who has changed his setting a

bit. i'm accustomed to seeing you in your office with books, album covers, now in front of the a fireplace. mr. liesman take it away. >> thanks, tyler the federal reserve minutes show they are an area of three discussions for further policy forward guidance, yield curve caps or targets, they're calling it yct i don't know if we're ready to go with in a abbreviation, and asset purchases. the fed staff presented models, to show they would have to run easing monetary policies for years. there was that concern in there, a qe and full forward guidance they have a lot of experience with, so of the three things that were mentioned, the fed likes the forward guidance part, and they said they had substantial questions abou yield curve targets. they didn't really like it very much they say qe can be beneficial in

the current circumstances and expressed port for a data-based forward guidance i know tom was just talking about his problems with what the fed was considering when it came to yield curve targets i can tell you these minutes show, tom, a lot of concern. i wished i could just read one section that shows -- as long as the committee's forward guidance remains credible, it's not clear they have to do forward guidance with the adoption of yield curve targets. it's just another form of it, but i'm clearly hearing the fed not ready yet. they had a staff presentation on it participants not expressing a lot of supports for the target, but they do like forward guidance. let me turn to you -- >> who wanted to jump in, was that you, tom? >> sorry it was tom i was going to say, just really quick. i would say, look, i totally agree. from our perspective, yield

curve control in the way they're talking about it, i don't think makes sense. there's only two officials that we're aware of that are pressing that idea. one is brainard, the other is williams i think that's probably one of the key reasons why this conversation has lingered. but again over recent weeks, we've gotten a sense, particularly from powell, we get the sense that it sounds like the minutes are expressing that. there's just not a lot of buy-in >> let me turn to you and get your reaction of the conversation that's been taking place here what due think about this idea of yield curve pinning down a point on the yield curve and defending that yield is it wise policy? would it work? what do you think? >> first off, i would mention the yield curve itself is a strong market indicator, and using artificial means to pin it down i think rids the market of something that's very important that many participants turn to

to get a sense of market expectations around the forward economy and inflation and the like so we thing that yield curve controls can be really a last resort instrument. i to agree that using the front end curve gives limited ability to make dramatic impacts, given the fed itself already controls the front end. in fact much of their forward guidance determines that that's to your point as it stands today with that said, it has less of an impact in terms of the market expectations and the like. i think there are some unintended consequences with holding these rates artificially low, and pushing this out would only exasperate some of the long-term impacts. i think that the hesitation around using this type of instrument is probably a prudent measure taken. >> let me go back to the thought i expressed a moment ago why would the fed be so explicit

and put a stake in the ground and say, in effect, we are going to defend by asset purchases, bond purchases, treasury purchases, this particular point on the yield curve why would they show their cards that way when, in effect, they can do the same thing through qe operations >> so one of the things that they have found in federal reserve policy -- i think i've had long conversations, you know, on the phone with tom about this, is the ability of the fed to get the market to move where it wants to go without doing anything when you talk to guys who have run the desk at the fed, the fed would low -- the policy committee would lower the rate by 25 basis points without the fed spending a dime, the market would adjust by 25 basis points the hope is something like this, tyler, by setting a target, the market doesn't fight the fed, but does the opposite, does the

fed's business with it, essential saying we want the yield to be x, the market adjusts to x without the fed having to do anything, sometimes nothing at all one of the concerns in this report here from the staff is that, hey, this may not work this time, and you may have to go out and spend boatloads of money -- or boatloads of purchasing to get the yield where you want it to be, and that's one of the risks and dangers here we've seen it work well with the funds rate another good example is what happened with the corporate bond market it doesn't have to do anything for a long period of time. the corporate bond market did great. that would be the reason to do it, but there's a lot of risk associated with it. >> steve liesman and everyone, thank you for your time. we'll talk to a doctor in

texas. plus as some businesses are forced to close again, and new york stops short of opening indoor dining for the time being. tillman fertitta says some governors are making things worse and the economic recovery is at risk he will explain why. more "power lunch" up next this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. snhu let's you transfer up to 90 credits - [announcer] if you've tried college but never finished, toward your bachelor's degree.

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welcome back, everybody. pfizer jumping today as it releases positive data from the latest vaccine trials. that good news has given the entire market a boost. let's get to meg tirrell for the details on these developments. hi, meg. >> hey, tyler. these are very early results, the first from a human trial of pfizer's vaccine partnered with biontech they found the participate, 24 of them generated neutralizing antibodies, the ones thought to be most important. they saw levels of those at two to three times higher than what they see in patients who have recovered from covid-19. time will tell if that's high enough to protect people from the disease with this vaccine. fever was observed at some of the higher doses, though they said it was generally observed to be safe, no severe side effects. this is just the first of four

vaccine candidates that they are testing. they do plan to start phase three trials with the beone of those four in late july. that puts them neck and neck with the leaders in the race moderna also saying it plans to start at phase three this month. astrazeneca on their heeled and johnson & johnson also pfizer expects to have 100 million doses available by the end of 2020, 1.2 billion by the end of 2021. we talked with michael dolsten about that. >> you want to make sure that you can shortly after a potential emergency use authorization could come this fall and full approval pending data that you can supply the

demand, the need for so many patients at risk and of course, to put society back into more normal cooperating environments >> ty, this is a two-dose vaccine more likely, so 50 million people this year, 600 million people next year tyler and kelly? >> thank you, meg tirrell with all the latest. this as cases continue to spike across the country, with eight states at record highs, including texas, which report -- according to johns hopkins, texas has seen a surge of more than 400% since it began reopening in may with more on what's behind the surge, let's bring in dr. peter hotez, he's at baylor college of mid sin. doctor, it's great to have you

you're working on your own vaccine. how is that going? >> that's right. we're trying to accelerate and low-cost global health vaccine for covid-19 using traditional technology used all over the world. what's nice about it is that technology is made locally in places like india, brazil, bangladesh and indonesia, and we're partnering with an organization on this path that led to the malaria vaccine, and the mencktio mennen j nen -- >> this is more of a unique application? >> no, i think potentially it could definitely have a u.s. indication the nice thing aboutit is it's a traditional technology inducing high levels of

neutralizing antibodies. so really some of the best vaccines will be those that induce the highest levels of virus-neutralizing technoloantis >> what is the hospital capacity in general like, as far as you can tell right now >> i think we still have room to go in hospital capacity, but that's not the point the point is we're seeing this very steep rise in community transmission across the metro areas of texas, especially hughesu houston, this very steep and scary rise some of the predictive modeling suggest that this is going to double or triple from even what we're currently see. tony fauci yesterday said that we could hit 100,000 cases a day in the united states when you extrapolate that, half

the population of texas, we're almost there so dr. fauci's apocalyptic predictions may already becoming true we'll have to make some really tough decisions and very soon. >> it's interesting. we had the head of one of the major houston hospitals last week that was frankly unconcerned about hospital capacity, said he's very calm about the whole situation, said there was plenty they could do to use existing hospital capacity and add some. i think they even stopped reporting hospitalization/icu capacity numbers you're in waco, not in houston, but it's interesting you sound far more alarmed than they do. >> actually i'm in houston, so baylor college of medicine is separate from baylor university. we're in houston i am concerned -- >> got it.

>> the texas medical center has a lot of heft. it's a medical city of 60 institutions, 100,000 employees. we do have room to accommodate patients, but the issue is this -- if the predictive models are correct there's no hospital system in the world that has that capacity. that's where i think a lot of the emphasis has to be on right now. how do we interrupt that steep, steep acceleration that we're seeing and the other piece to this is, i think it's disproportionately affecting low-income neighborhoods particularly we don't have all the demographics yet, but i think this virus across the metro area in the southern part of the united states is hammering at the low-income neighborhoods i'm very worried about these groups. >> you know, dr. hotez, it's clear we don't have control of the virus in many parts of the country, let alone have it on

the run. there was an aerial in the "wall street journal" written by dr. gallo, positing the idea, particularly one for polio that they may boost an immune system as a stopgap have you heard about that research do you think it could be promising? >> yeah, it potentially could. we've also looked at not only a polio vaccine, but another live virus vaccine, the measles, mumpses rubella vaccine, that may have a role. it requires clinical trials, but that's going to take time as well to do one of the things i'm very excited about coming online in the next few weeks i hope, are some of the antibody therapies, because they basically work on

the same principally, neutralizing the spike protein they can be used as short-term treatment or even pro -- together with steroids, together with the anticoagulant and the remdesivir, so we are doing better at icu care, and we're learning how to take care of these patients one of the things i am worried about, even if the mortality rate goes down because of those, we're starting to hear about permanent injury to the lungs, to the cardiovascular system, permanent neurologic injury because of this virus. we still have to address that long-term debilitating effects this -- the effects of this virus will haunt us for a generation, i'm afraid. on that note, we have to leave it

i couldn't agree more. this is a real killer disease. thank you, doctor. apple will close more stores across the country as cases in the u.s. continue to climb josh lipton has the details on this josh >> yeah, that's right, tyler this news coming from apple. apple will be reclosing more stores, 30 more stores closing tomorrow that will include 15 in southern california all of the stores in las vegas and georgia. remember, earlier this week apple closed stores in texas, in florida, in utah so apple has re-closed 77 stores in total in the u.s. that means the majority of its 271 stores here do remain open to some degree that could mean obviously just curbside pickup. remember apple has said they'll follow the data. if the company felt like it needed to safeguard the health and welfare of its employees and customers, that's what they're

doing. back to you. josh, apple shares still up about a third of a period. the nasdaq is up nearly 1% the dow is hanging on to positive territory here. still ahead, gold is near its highest levels could the precious metals rally be a warning sign for the markets? the traders weigh in beyond meat is going with alibaba. we'll tell you what it means for the beyond meat stock. much more after "power lunch." apps are used everywhere...

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in the day so can the safe haven asset continue to rally? your "trading nation" team is tina sanchez and j.c. o'hara by phone. tina, let me start with you. what do you see in the future for gold it looks like maybe on some levels the winds are favorable >> yes, i think we'll look back at this high as a new trend for gold one of the biggest elements that drives gold is the direction of yields what we have seen is that it departed from its trends when you saw the massive money printing and stimulus that occurred after 2001. i think that we have dropped a money bomb but governments around the world that will lead to this continued stimulative effect that will impact gold for years to come. i think this is the beginning of

yesterday another trend driven by debt-driven stimulus. the direction of the dollar could work against it, but volatility, until we see a vaccine, volatility works for it >> so money printing up, yields down, tailwind for gold. j.c., do you see it that way >> i do. i think gold with cork and stocks can both works. they're not longer taking clues from each other. i think gold is one benefiting from a weaker dollar in our view, the most important in and has real yields we brought a start along where where he plotted gold, and that's the spritz and, you know,

real yields have been negative and declining we see no end to that two cheers for gold. i gina and j.c., thank you gold is trading at nine-year highs doesn't project a lot of optimism you know who else isn't feeling optimistic about it? tillman fertitta the spike has him worried. where is the mask? >> right here. i got it close it's close. >> i bet you do. it's a day late for tilman tuesday, but never short we're right back after this break.

welcome back, everyone, here is your cnbc news update california reporting another report for new coronavirus cases. more than 9700 have been confirmed in the state since yesterday. governor gavin newsom is expected to retighten virus restrictions within the next hour you can go to cnbc.com for updates on the pandemic. russian election officials say voters have overwhelmingly approved constitutional amendments some will allow president p president putin to stay in power. but complaints have been received about election violations. coca-cola is discontinuing

the odd wabwalla juice brand. comedy central has committed to two seasons with the create r or the deals also calls for spinoffs and specials. that is the news update. what is old is new again canned soup? beavis and butthead? plastic bags there you go >> sue, thanks very much despite today's positive vaccine news, tillman fman fertitta as d business has been showing a slow recovery, but not anymore. the sales dropped 8% by the week before in texas and flags flaorida, wes

to 12% tilman is here to explain the sentiment. welcome back >> hey, kelly. how are you? >> the question is, how are you? how much do you dread what's coming in the next several months for your businesses >> well, i mean, you think you're coming back, and then all of a sudden you realize you're not. you know, it's slowing down every day right now, and then you hire all these employees back for 19 stores that are opening in new jersey, and 22 stores that are open in manhattan, and then you bring these employees back, start training them, and now all of a sudden you're not opening again. what's so sad about this is our employees aren't yo-yos, okay? we can't say get off

unemployment, come back to work and we send them home again. that's where we are right now. at some point we have to take a position and tell restaurants you've got to socially distance, you can only be at 50% if you don't follow those rules, we're going to shut you down we know how to social distance in our restaurants almost every restaurant i go into, i see the same thing, but at some point -- and you have to wear your mask, except when you're eating, but we can't keep treating employees and the general public out there and businesses and landlords, and us, where we don't know where we're headed it is a mess right now. >> i want to ask you about -- i'll begin there, the governor, andrew cuomo, our guest last hour, made all these references to air filters to really recycle it, purify the air how realistic is it for you and

how costly would it be to install state of the art filters in all of your restaurants to at least say, look, this air is as clean as can possibly be. >> we will do whatever it takes, okay when you still look at what a restaurant can do, your bus counter restaurants in a day, those are small dollars, but you have to remember like in manhatt manhattan, we're some somebody else's building, usually in sky scrapers we're not in control of the air filter there we'll do whatever we have to do in a freestanding building, but they need to do what they need to do in their buildings i'm sure it's a huge cost when you're talking about commercial mechanical hvac systems. >> you mentioned some of back-and-forths about the reopening. i think what's happening in atlantic city -- i don't know if comical is the right word. >> that's a good word, kelly comical. >> explain the story here.

you said we've got no guidance on reopening atlantic city govern govern murphy came out with a day, but the follow guidance was issued on tuesday -- no smoking, no drinking, no restaurants, water can be served, but only sip as needed, keep the mask on at all times obviously we understand the goal, but is this realistic? or should they keep the places shut until there's a more feasible getting back to business >> well, we're opening up friday, so i'll be able to let you know next week now, remember, you can only have that sip of water if it's a health and safety issue. so you have to be going co comatose you're telling me this isn't a mess, that it's not comical right now?

>> i get the goal, for sure, avoid thethings that interfere with a wearing of the mask, but at some point you wonder if this whole thing should be delayed. you had some big, big news this week about i-gaming. you're going to spin it out from the golden nugget, but here's my question, a lot of investors don't want to lose exposure. i think that's a fast-growing asset. why do the spinout >> well, we did the spinout when i did that $300 million loan a few months ago so it already had been spun out, and we're just operating that's what we borrowed the $300 million on so what happened next is there was this opportunity with this fact that we already had, and jeffries is or banker and said, hey, why don't we take this public there is this great wave right now because of the pandemic, and

also because of the how successful your new jersey i-gaming market is, and because they represent us, we also know we had just signed up michigan and pennsylvania, and the growth is unbelievable for i-gaming it's a great company, and it already makes 25, 30 million a year in ebitda that's before we go into michigan and pennsylvania. so it's a company we're truly excited about. obviously all the shareholders are very happy, because it's traded up 50%, and the runway is unbelievable for it. it's a much better runway than the rest of our business, i can tell you that. >> one more question on that how is the capital position overall? so many assets, ironically all of them have to do with people gathering closely together what happens if this is dragging on into the turn of the year now? >> well, i keep all of my

companies in different silos, but the restaurants and the casinos are in one silo together, and even the casinos it had picked up, slowed down last week. you've got to remember we're in the states where the people are. my three biggest states are texas, then california, then florida. the restaurant business is not good right now, and it is an issue. it's a serious issue, because landlords are tired of not getting paid when you see sympathy towards them. this is going to continue you have to this point the government has done a good job of putting money in people's hands, but at some point the united states government will have to step up and give all landlords forbearance to their loans and forbearance for us we can't operate so many restaurants at negative 60%,

70%, 80% and make rent at payments for the restaurants we don't own. at some point the rubber has to meet the road, and somebody has to do something if they're going to shut us down. just like manhattan telling us you're not opening up, and we don't know when you're going to open up. texas, they brought us back to 50% where we operate 180 restaurants. forgot the 50% we don't need 25% right now, because nobody is even going out in texas we were not scared in texas two months ago when everything opened up. we didn't have any cases governor abbott did the right thing. we had no cases. now we have cases. he's doing the right thing again. you have to slow it down how this transmits is in the bars and the nightclubs. i'm sympathetic to these people and these young people if we're going to keep them shut down 100%, we need to step in and help these people.

they can't go out of the business. >> tilman, you've made been in those brayed by other people are people respecting the social distancing are they wearing masks in texas? are they still taking a more calf lease attitude? my sense is they've gotten some religion here. >> we have definitely gotten some religion in texas, and there is 100% social distancing, and everybody is wearing their masks. we won't serve anybody if you don't have a mask. even if the government won't plead, i will continue to plead. we either have to social distance and wear or masks, or just do a total shutdown again we have to slow down the virus i think people are respecting it in texas i haven't traveled anywhere else recently, so i don't know, but it appears everybody is respecting this. social distance, wear your mask,

so we can please open up this country. >> final question, nba-wise, more people are testing positive are theygoing to start july 30th finish this thing out? is there a plan for what happens if the teams end up not having enough people on the court for a game or two or more? >> well, i don'ts that as a problem. they expanded our rosters and you might not recognize some of the players that are playing, but also a lot of players are getting it now, and hopefully by july the 30th, everybody that is going to get it is going to get it by the time, you know, we get into orlando but teams will start moving there next week. this is going to be extremely interesting to watch i'll say it again. i think that we're going to definitely get started i think everybody's excited. i have my doubts if this coronavirus continues to explode

the way it is, that we're all going to be affected so i have all the hope in the world, but i also had all the hope in the world that come july 1st that i would have all my restaurants, aquariums and amusements all over the country and casinos. i still don't. >> exactly all the hope in the world and here we are asking for sips of water at a casino. >> right now we're in a little despair. >> thank you so much for joining us we look forward to talking with you again soon. >> wear your mask. >> yes. >> we feel for tilman and everybody. he's one of the most upbeat people i have encountered in recent years, and he's a sobered man. tilman, we're thinking of you. >> take care. coming up, another sector getting hit hard as the

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time for power movers, jump on pfizer on hopes of covid-19 vaccine. look at companies working on their own vaccine low or across the board. match shares lower as it completes the spinoff from iac as part of the move appointing

four new board members including ryan reynolds and rudolph mud okay sales beating estimates despite a drop in beer shipments the ceo will join jim cramer on "mad money." >> beyond meat on news it will start selling in china aditi. >> shares up about 5% right now. this move is pour for beyond because it marks the first time they will be selling at grocery stores in china. the company's entrance into the china he's retail market comes with alibaba it will land on 50 stores in shanghai and 48 in beijing and another starting in september. the launch follows beyond's partnership with starbucks china and yum brands chains in the country. china is a critical market for

alt meat companies the good food institute reports in 2018 the domestic plant-based meat industry in china was about $910 million, growing 13 to 15% each year. because of that opportunity a lot of other companies are also eyeing the region. after testing markets with nuggets, cargill, it's rolling out this month nestle opened up alternative meat market in china last month. impossible foods is also trying to get regulatory approval in china. it announced it's launching products at starbucks stores in singapore. guys, it's a huge opportunity there. >> huge opportunity. a lot of different players see it aditi how much competition will beyond meat have? >> that's a good question. there's a lot of home grown competition. these companies like beyond meat

will be offering products, the same product as you'd see on u.s. store shelves whereas the local competition, zen meat, omni, whole foods and perfect foods, they have created plant-based meat products for local specialties like moon cakes, oyster sauce. they definitely have an edge there in the competition. >> all right aditi, thank you aditi roy with the latest beyond meat tyler. >> mall-based retail in trouble before the coronavirus but now things are getting even worse. macy's posting a huge net loss nordstrom may cut thousands of jobs we'll talk the future of retail next enn't forget watch or list live on the go on the cnbc app we'll be right back.

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dismal results for the first quarter, fiscal quarter, that is, including a 45% decline in sales year over year nordstrom lower after it's reportedly set to lay off thousands of employees, 20 to 25%, perhaps, as it seeks to cut cost roll backs amid record spikes in coronavirus cases, back-to-school shopping boost out the window, what is next with big retailers let's talk more with ceo and chief research officer at tellsi group. before nordstrom and macy's, dana, is there going to be a back-to-school shopping season if so, what's it going to be like >> totally different whether back to school or holiday, it's going to take on a new form what we all knew about everyone

together in a store, that social distancing isn't nice to have, a must have. we're seeing orders cut tremendously we don't even know what school is going to be like. are children going to go back to school that's the real question or virtual learning from home so i think the level of goods out there, we're seeing orders being cut. we're seeing even more casual wear for kids out there. i think it's not going to be a robust christmas season or back to school season that's why you're seeing companies cut inventory as much as they can in order to be lean going into back to school for the back half of the year. >> yeah. i question we don't even know whether school will begin. whether it's going to be back to school, why would you do it, if you wear sweats or pajamas or whatever and do your work that way. let's get to specifics of these big retailers. stores i'm fond of, dana i tell you, i love going to nordstrom, i like going to macy's sometimes

sometimes. macy's has a big challenge in terms of the number of stores, the size of stores what is it going to do >> i think overall they are still pivoting the strategy they talked about in february on september 2nd when they report their second quarter, we're going to get an update what are they doing? i think what this coronavirus is doing for all retailers, it's accelerating what's happening to begin w they are going to increase digital penetration and they are already seeing that they are going to increase the number of store closures i think the number of 125 they talked about, it will be more than that. i think overall when you talk about head count reduction, we've certainly soon it with macy's, hearing about it today from nordstrom if you're not going to have as many stores, you don't need as many people. whether macy's or bloomingdale's there's several reductions going on they are going to be smaller the goal is what does profitability look like coming out the other side what you do know is you do need physical stores, buy online, pick up in store, ship from store, fulfill in store, they

are an important integral component. they will be smaller and will consumers find them as relevant. go ahead. >> i want to get to nordstrom in just a minute. one of the things i like about macy's and bloomingdale's they have everything. everything from bedding to clothing to housewares, to plates and china and things like that are they trying to do too much, be too much to too many people. >> i think they are still going to have home because that's an important category it's one of the categories overall that even did well this time i think the buckets of apparel can be streamlined certainly today women overall we're buying clothing for work, home, and the gym that basically are all integrated you take it up another notch today with work from home, the level of assortment doesn't need to be as diverse as it used to be i think we'll see lessafter peril at the end of the day. >> about 15 seconds. nordstrom, is its hill less steep than macy's. >> less number one because of the less stores, price business,

number three integrating less time less steep and higher income customer. >> dana, you know what 15 seconds means. love it. thank you very much. good to have you with us. >> i think that was about four seconds, guy. >> that's pretty good, a buy right there. >> mall crowded again driving by it i'll keep everybody posted thanks for watching "power lunch. closi close"closing bell" starts righ. >> welcome to closing well stocks higher, bumpy session on this first day of the second half of 20 20 dow dipping in and out of positive 3119 and nasdaq is the outperformer let's look at what's driving the action overall pfizer released encouraging coronavirus vaccine data from its early stage trial. new data showing strong employment growth in june and may ahea